According to news on November 17, Jai Bhavnani, co-founder of DeFi protocol Rari Capital, and Joey Santoro, founder of Fei Protocol, jointly proposed a proposal to merge RGT and Tribe tokens, and this proposal has also caused great controversy.
Here’s what Rari Capital co-founder Jai Bhavnani proposed for the merger:
Hi Fei Community:
I'm Jai, co-founder and contributor to Rari Capital DAO, and I've been thinking about Rari, Fei, and the overall trajectory of the DeFi industry lately and wanted to share a proposal.
If you’re reading this, you’re probably aware of the impact the DeFi industry could have on the world. As DeFi pioneers, we can fundamentally change the way value is perceived and traded, and we can fundamentally change the way the world works. Rari started out as a yield aggregator, but has grown into a robust open rate protocol that lays the groundwork for the production of any asset. At the same time, Fei introduces the most powerful stablecoin in DeFi, providing a trustless basic unit of account for the future of DeFi and the currency itself.
Rari and Fei are two of the most powerful primals with the potential to change the world, and together they are even stronger. We've learned the power of this collaboration:
1. Fei is the first DAO to start the Fuse pool and deposit directly from DAO;
2. Fei directly provides liquidity for a wide range of fuse pools (more than 10);
3. Fei assisted in writing one of the first batch of fuse plugins to improve the capital efficiency of Liquity/LUSD fuse pools;
4. The Fuse pool stores a large part of TRIBE supply;
5. Fei / Tribe is the first LP asset to receive liquidity mining rewards in Fuse;
6. Fuse enables Fei to directly bootstrap its stablecoin in a way that Aave/Compound will never be able to;
These achievements are just a taste of what both parties can achieve together. I think we should redouble our efforts for the benefit of DAOs, the community, and the entire DeFi ecosystem.
I suggest:
I suggest:
1. Convert RGT to TRIBE at a ratio of 1 USD: 1 USD.
2. Fei creates an appropriate contributor incentive mechanism as a mechanism to expand Fuse/revenue aggregator;
3. Use Fei to fully repay Rari DAO's debts caused by the ETH revenue aggregation loophole;
4. Let independent communities (Fei, Rari) build together under a shared Tribe family;
The following is the content of the proposal of Fei protocol founder Joey Santoro:
Hi guys! I am Joey, the founder of Fei Protocol.
TRIBE's vision has always been to build the DeFi we all want and need, and both Fei and Rari capture a key part of that vision, fully decentralized algorithmic banking and money markets. And together, we can achieve more.
It is for this reason that Rari DAO and Fei DAO core contributors want to submit an ambitious proposal that will change the DeFi landscape forever: the merger of RGT and TRIBE.
Together, the combination of Rari and Fei will create a whole new type of DeFi platform, and the combined strengths will enhance our existing strengths.Why a merger would strengthen Rari and Fei
The strengths of Rari and Fei are perfectly combined, and the RGT/TRIBE merger creates many synergies.
The main bottleneck to Fuse's growth is launching a pool with initial liquidity and ensuring long-tail assets are resistant to oracle manipulation. And Fei DAO can easily provide this initial FEI liquidity to solve the chicken and egg problem, and Fei DAO has done so in 15 fuse pools, including 8 pools in the top 10.
Tighter integration between protocols will enable fundamentally new types of DeFi services. On Rari, the oracle problem is a major bottleneck, and Fei DAO can help scale this with Ondo's Liquidity-as-a-Service. By quickly and cheaply generating deep liquidity on Uni v3 or Balancer v2, protocols can gain a manipulation-resistant full range of embedded TWAP oracles to power Fuse markets. Combined with FEI liquidity deposits, users can use existing FEI liquidity to conduct any transaction they wish to achieve in the market.
A union between Rari and Fei will strengthen this relationship. For any token, Fuse becomes the easiest, most frictionless way to scale utility, and FEI becomes the most liquid pairing asset.
……
RGT to TRIBE Conversion
Takes the RGT in USD and returns the TRIBE equivalent. We can use neutral third party and historical price data to ensure it is done in the fairest way possible and not easily manipulated. Some options include Gauntlet, Llama DAO, and Reverie.
The existing RGT treasury can be overwritten by the existing TRIBE treasury and the remainder will be newly minted TRIBE.
Hacking incident
governance
governance
In the short term, the Rari Capital DAO and processes, including all smart contracts, will remain the same, while RGT will be exchanged for TRIBE, and in the long term, both protocols can converge on a standard set of governance practices.
In response to this merger proposal, community member cozeno raised his doubts:
1. Tribe is still in a state of price discovery, and the net PCV value of each TRIBE token is close to 1.8 US dollars. Therefore, for the initial holders of TRIBE, the current transaction means a decline in the value of TRIBE.
2. RGT has experienced 5500% growth in the last year, and RGT is now carrying significant liabilities. Its TVL to market capitalization ratio hovers at 3:1, while blue chip lending agreements, such as comp, have a ratio of 6:1, and Aave's ratio It is 7.2:1. The Rari team should provide more data such as organic protocol earnings and current protocol liabilities to give TRIBE holders a better understanding of their valuation.
3. Tribe should not be affected by additional inflation not mentioned in the white paper. The protocol has worked hard to control Tribe rewards in the past few months, and finally entered a stable circulation state.
4. Fei should not be responsible for the compensation of victims of the Rari hack, if Rari itself is unable to pay such an amount, perhaps this masks further liquidity issues at Rari, which requires further review.
This article comes from Tao of Yuan Universe, reproduced with authorization.
This article comes from Tao of Yuan Universe, reproduced with authorization.
